China, Hong Kong stocks recover lost ground since re-escalation of trade war
- US Fed dovish tone boosts sentiment of traders
- Hang Seng closes at 28,550.43 – its best level in nearly six weeks
China and Hong Kong stocks on Thursday recovered lost ground since the US-China trade war re-escalated almost two months ago, as a dovish US interest rate outlook boosted sentiment amid optimism on trade relations.
The Shanghai Composite Index closed up 2.4 per cent, to 2,987.12, marking its fourth-straight day of gains. The benchmark was at its highest level since April 30, the trading session right ahead of a sharp decline of 6 per cent as trade tensions flared up.
The advance came after the US Federal Reserve hinted it may cut interest rates ahead if needed. A phone call between Presidents Xi Jinping and Donald Trump on Tuesday night also buoyed investors’ mood.
The CSI 300 of large stocks on the Shenzhen and Shanghai markets rose 3 per cent. The Shenzhen Composite Index rose nearly 2 per cent.
Turnover in Shanghai and Shenzhen reached 603 billion yuan (US$88 billion), up from 504 billion on Wednesday and higher than the daily average of 492 billion yuan recorded in May.
In Hong Kong, the Hang Seng Index gained 1.2 per cent to 28,550.43, its highest level since May 8.